The document summarizes Viet Nam's unemployment insurance policy, including its implementation status and lessons learned. The key points are: 1. Viet Nam's unemployment insurance policy came into effect in 2009, providing benefits like unemployment allowance and vocational training support to insured workers for a duration of 6-12 months, depending on how long they paid into the insurance system. 2. Implementation of the policy has expanded significantly between 2009-2011, with over 7 million insured people and $265 million collected in premiums estimated for 2011. Over 300,000 people registered as unemployed or received unemployment benefits in 2011. 3. Lessons learned include the need to clearly define policy objectives and benefits, issue timely guidance, oversee

1. VIET NAM’S UNEMPLOYMENT INSURANCE POLICY
CURRENT STATUS AND
LESSONS LEARNED
Mr. Le Quang Trung
Deputy Director of Bureau of Employment
Ministry of Labour – Invalids and Social Affairs, Viet Nam

2. Contents
Part I: Unemployment Insurance Policy
Part II: Implementation status
Part III: Lessons learned

3. Part I:
Unemployment Insurance Policy

4. The unemployment insurance policy came into force on 1st
January 2009. The policy is stipulated in the Social
Insurance Law adopted by the National Assembly of the
Socialist Republic of Vietnam on June 29th , 2006; and the
Decree No. 127/2008/ND-CP dated December 12nd 2008 of
the Government providing guidance for the enforcement of
relevant stipulations of the Social Insurance Law on
Unemployment Insurance.
LEGAL FOUNDATION

5.  a definite term of between full 12 months to 36 months;
 an indefinite term;
2. Employers: employing 10 or more employees.
1. Workers: Vietnamese citizen with following types of labour
contracts, work contracts:
1. UI COVERAGE
But not cover people who:
- receive monlthy retirement pension;
- receive monthly injury allowance;
- have contracts out of the above types.

6.  Having paid unemployment insurance premium for full 12
months or more within 24 months prior losing his/her job or
terminating his/her labour contract, working contract;
 Having registered with the Employment Service Centers
after lossing jobs or being terminated labour contract or
working contract;
 Having not yet found a job after 15 days from the date of the
registration.
 Conditions: The insured person meets the following three
qualifying conditions:
2. QUALIFYING CONDITIONS

7.  Insurance period
 Starting from the first day of premium payment to the day
he/she losses his/her job or terminates his/her labour
contract or working contract.
 The time of entitlement to unemployment insurance
 When fully meeting the above-mentioned conditions for
entitlement to unemployment insurance, workers shall
receive unemployment insurance benefits from the 16st
day from the date of his/her registration with the
Employment Service Center.
2. QUALIFYING CONDITIONS (Continued)

8. 3.1 Unemployment allowance
• Not more than 06 months;
• A level of monthly unemployment allowance shall be equal to 60% of the
average of monthly salaries or wages covered by unemployment insurance
premiums (UIPs) of six months immediately prior losing his/her job or
terminating his/her labour contract without receiving UI allowance.
3. UNEMPLOYMENT INSURANCE BENEFITS
Duration for monthly
unemployment allowance
Periods of paying unemployment
insurance premium
3 months Full 12 months to less than 36 months
6 months Full 36 months to less than 72 months
9 months Full 72 months to less than 144 months
12 months Full 144 months or more

9. 3.2 Vocational Training Support (VTS)
• Within the period of entitlement to UI allowance, workers could
receive VTS, but must not exceed 6 months;
• UI Fund finances the expenses for VTS.
3.3 Job Seeking Support (JSS)
• A worker on unemployment allowance shall be entitled to the
job consultation and services free-of-charge provided by
Employment Service Centers;
• UI Find finances the expenses for JSS.
3.4 Health insurance
• People on unemployment allowance are entitled to the health
insurance scheme;
3. UNEMPLOYMENT INSURANCE BENEFITS (cont.)

10. 4.1 UI Suspension
Workers on the unemployment allowance are suspended from
receiving unemployment allowance in either of following cases:
• Failing to monthly report on their job seeking efforts to labour
agencies;
• Being put in detention.
4.2 UI Resumption
Above – mentioned workers could resume their entitlement to
the unemployment insurance in following cases:
• The period of receiving the unemployment allowance has not
yet expired and workers resume his/her monthly report on job
seeking efforts to the labour agencies;
• The period of receiving the unemployment allowance has not
yet expired after the workers are released from detention.
4. SUSPENSION AND RESUMPTION OF
UNEMPLOYMENT ALLOWANCE

11. Workers on the unemployment allowance are no longer entitled
to UI allowance in one of following cases:
• The monthly unemployment allowance’s duration expires;
• Getting a new job;
• Being called up for military service;
• Being on the old-age pension;
• Settling overseas;
• Being dead;
• After two times of refusing a new job that is introduced by the
Employment Service Center without plausible reasons;
• Not notifying monthly the Employment Service Center of his/her job
searching within three months continuously;
• Serving a decision on application of administrative sanctioning
measure at a reformatory, educational institution or healthcare
establishment or being in imprisonment but not suspended sentence.
5. TERMINATION OF UNEMPLOYMENT ALLOWANCE

12. • 1% of the monthly payroll covered by UIPs paid by
employer
• 1% of the monthly salary or wage covered by UIPs
paid by employee;
• Monthly, the State shall provide a budget that is
equal to 1% of the monthly payroll covered by UIP
and annually transferred.
6. UNEMPLOYMENT ALLOWANCE CONTRIBUTIONS

13. Part II:
Implementation status

14. 1. UI SCHEME PARTICIPATION
Criteria 2009 2010 Est. 2011
Insured People 5,993,300 7,206,163 7,674,716
UI Premium (Million USD) 171.25 251.16 265.2
171.25
251.16
265.2
0
50
100
150
200
250
300
2009 2010 Est. 2011
UI Premium (Million USD)
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
2009 2010 Est. 2011
5,993,300
7,206,163 7,674,716
Insured People

15. 2. UI IMPLEMENTATION PERFORMANCE
Criteria
2010
(people)
Nov. 2011
(people)
% changes
Registered unemployment 190,965 318,457 166.8
Entitlement to unemployment allowance 156,460 270.359 172.8
Transferring places of receiving unemployment benefits 27,885 53,912 193
Having job consultation, employment placement 125,562 203,338 162
Having the Vocational Training Support 270 702 267
 The payment and handling unemployment benefits are
implemented by the labour sector and under the 3-right
principles “right objects, right benefit and right time”.

16. Part III:
Lessons Learned

17. 1. To indentify clearly the objectives, significance and
impacts of the unemploymen insurance on the social
protection issues in each country; To promote the
dissesmination activities on legal regulations of
unemployment insurance in various and suitable forms to
improve the awareness of agencies, employers and
employees regarding their rights and resposibilities;
2. The relevant legal documents should be issues suffiently
and promptly to meet the practical requirements;
particularly the indetification of the insured objects and UI
benefits; To dealt with the obstacles arising in the
implementation process. The preparatory activities for the
conditions of the implementation are very important;
LESSONS LEARNED

18. 3. To regularly inspect, review and guide the implementation
of unemployment insurance policies in enterprises and
organizations. To promptly indentify and dealt with any
violations.
4. To identify clearly the responsibilities of employees,
employers and relevant ministries regarding the
implementation process;
5. To consolidate the intersectoral coordination among
MOLISA, Social Insurance and Ministry of Finance in
implementing policies; making the coordinating regulations
among sectors to create the close relation to facilitate the
implementation process;
LESSONS LEARNED (Continued)

19. 6. It is very essential to learn the good practices of other
countries related to unemployment insurance policies. To
promote the international cooperation to mobilise financial
and technical supports;
7. To apply advanced technology to the implementation
process.
LESSONS LEARNED (Continued)

20. Thank for your attention!